UBUSOUBUSO

“The Face of Eskom”“The Face of Eskom”A Case Study on

Eskom’s Customer Relationship Management Solution

By:Hugh McGibbon (Divisional Customer Service Manager)Kevin von Berg (Senior Consultant (Customer Service)) (Presenter)Distribution Division, Eskom Holdings Ltd

18 May 2005

Topics

• Background• The aim of CRM (in a regulated Utility with a Captive

market)• Selection of an appropriate CRM solution for a utility

company• Essential foundations as a base for a CRM solution • Implementation project - lessons learned• Improvement in performance • Benefits tracking• Future vision

Over 3,7M Customers

Eskom’s Customer Service environment

VIRTUAL FRONT OFFICE

Contact CentreCampaign Mgt

OutboundTelephone, SMS

Service Agents

Contact CentreCampaign Mgt

OutboundTelephone, SMS

Service Agents

7 xContact Centre

Front OfficeInbound

Telephone, SMS,Email, Fax, MailService Agents

7 xContact Centre

Front OfficeInbound

Telephone, SMS,Email, Fax, MailService Agents

EATFace to face,Telephone,

Email, Fax, MailService Agents

EATFace to face,Telephone,

Email, Fax, MailService Agents

99xWalk in Centres

InboundFace to Face

Service Agents

99xWalk in Centres

InboundFace to Face

Service Agents

Service RepsInbound

Face to FaceService Reps

Service RepsInbound

Face to FaceService Reps

Customer ExecsInbound

Face to FaceCustomer Execs

Customer ExecsInbound

Face to FaceCustomer Execs

Self Service

InboundIVR, CSOnLine

Automated

Self Service

InboundIVR, CSOnLine

Automated

VIRTUAL CC

VIRTUALBACK OFFICE

Hundreds of locations

Risk ManagementBack Office

Handling of routed Work ItemsCRM Workflow

Admin / Processing / Service Resolution

Risk ManagementBack Office

Handling of routed Work ItemsCRM Workflow

Admin / Processing / Service Resolution

Contact CentreBack Office

Handling of routed Work ItemsCRM Workflow

Admin / Processing

Contact CentreBack Office

Handling of routed Work ItemsCRM Workflow

Admin / Processing

CS AreaBack Office

Handling of routed Work ItemsCRM Workflow

Admin / Processing

CS AreaBack Office

Handling of routed Work ItemsCRM Workflow

Admin / Processing

WorkflowManagement /System Admin

3 x Account OperationsBack Office

Handling of routed Work ItemsCRM Workflow

Admin / Processing / Service Resolution

3 x Account OperationsBack Office

Handling of routed Work ItemsCRM Workflow

Admin / Processing / Service Resolution

Wires BusinessWires Business

4 million Customer Contacts a year (270000 per month), 7 languages, 24x3654 million Customer Contacts a year (270000 per month), 7 languages, 24x365

Internal Workflow65% Electricity Supply Problems

20% Accounts, Payments & Meters5% Applications

5% Credit Management

Internal Workflow65% Electricity Supply Problems

20% Accounts, Payments & Meters5% Applications

5% Credit Management

The aim of CRM in EskomTo Reduce Cost through efficiency, while improving Customer

Service Electricity Supply Problems

Accounts, Payments & MetersApplications

Credit Management

Electricity Supply ProblemsAccounts, Payments & Meters

ApplicationsCredit Management

Aim is 75% First Contact Resolution(Immediate resolution)

Aim is 75% First Contact Resolution(Immediate resolution)

Aim is 95% One Contact Resolution(Only 1 inbound contact

from the customer)

Aim is 95% One Contact Resolution(Only 1 inbound contact

from the customer)

CASE MANAGEMENT(Tracking, & Escalation (if necessary))

Multiple outbound contacts(as required)

Inbound customer contact(Service Request)

EXCEPTIONS(Overdue or repeat customer contact)Escalated to Customer Accountable

AND Task Accountable people) Resolved (with Escalation)

(Aim is Zero never resolved)

Resolved (with Escalation)

(Aim is Zero never resolved)

CASE MANAGEMENT(Case closed immediately)

Pure Framework Solution (as opposed to a Package or Hybrid Solution) • to match Eskom’s processes exactly• to fit in with our CIS Billing package

Flexibility• REDs• Scalable• Able to integrate with all billing and engineering systems • All major electronic interfaces (telephone, e-mail, SMS and the Internet) Speed of Implementation

Maximise Existing Investments• Existing Value Chains and business processes• Compatibility with existing IT investments

Low Business Impact• Training• No disruption on switch over• Easy to use

Selection of a CRM solution

Essential foundations to implement CRM Achieving a Win-Win balance between Customer

Expectations & Cost STEP 1 - VISION (1995)• Geographic accountability to a person• All interactions possible electronically• Move to remote contact• Single virtual Contact Centre• Full contact history• No cash handled by Eskom• Process focus• Customer choice of channels / media

STEP 2 – PROCESSES DEFINED (2000)• Value Chains (Manage Revenue Cycle, Optimise Customer Interaction, Acquire

Customer, Manage availability of supply, Network Asset creation)• Bench marking / World Practices• Process ReEngineering• ARIS modelling

STEP 3 – CORE SYSTEMS• Virtual Contact Centre Infrastructure / Multimedia (2002)• CIS (2003)• Field Service Management

– Work Management / Scheduling / Despatch (2000)– Mobile Data Terminals (2001)– Cellphone / PDA (2004)

STEP 4 – CRM FRAMEWORK SOLUTION• Ubuso Project – The Face of Eskom using Framework CRM solution

Overall picture

3,7M customers

7 Contact Centres99 WICs3 Acc Ops

CSDC

Accountability1 Virtual Workforce

7 languages

4 services

CRM PROCESS MANAGEMENT

CIS FIELD MANAGEMENTCASE HISTORY

MDT

DisconnectCell/PDA’s

How CRM fits in: Business System Architecture

CRM Solution:CRM Solution:

Agent desktopScripting

Knowledge MgtMultimedia Queue(Fax, Email, SMS)Case Management

Workflow

CIS / Billing:CIS / Billing:

BillingCredit Management

Payments

Field WorkField WorkManagement:Management:

Wires businessWork scheduling

Enterprise WorkflowEnterprise Workflow

Document ManagementDocument ManagementeMail & SMS:eMail & SMS:In & outbound

Contact CentreContact CentreTelephony:Telephony:

Call RoutingVoice Mail

Voice LoggingIVR

Outbound Dialling

CS OnLine:CS OnLine:Web Self Help

IVR:IVR:Self Help servicesAccount Balance

Fault info

CTI:CTI:

Computer-TelephonyIntegration

Call control fromAgent Desktop

Calling Line ID

Dialler:Dialler:Call campaigns

Technology Architecture – Integration bus

Wires DB

CRM DB iBusCRM

ProjectMgt

CISGIS

CIS DB

SMSEmailFax

DataMining

(Reports)

XAI

I V RDialler

Fault MgtWork Mgt

Legend:iBus adapter

CRM Service Object

Point-to-point interface

CTI PSTNSwitch

CTI PSTNSwitch

CTIPSTNSwitch

CTI PSTNSwitch

CTI PSTNSwitch

CTI PSTNSwitch

CTI PSTNSwitch

Regional

Regional

Case Management: Workflow

Customer hasrequest

Additionalwork required on

case

Case Closed

Case HistoryCase HistoryCase History

CRMWorkflow

GTXInbound

Inbound agentopens a customer

case

CRMWorkflow

Configuration

KPI configurationRouting

configuration

WorkflowRejections

EscalationsEscalationsEscalations

EATWork items

External SystemRejections(Maximo)

External SystemRejections(Maximo)

External SystemRejections(Maximo)

Workflow Management

Route toDepartmentLocation and

Position

Workflow HistoryWorkflow HistoryWorkflow History

Responsible position indepartmentResolve

Accountable position indepartment

Monitor

User rejects work assigned to them. Workis routed to the CCDC who either does afollow up or re-allocates the work.

When EAT Work Item are sent, theRegional CS Manager, AreaManager and Task Accountable Managerof the applicable region are notified.

Engineering Work Item is rejected.Follow-up done by person who viewsMaximo rejections. Work item is followed-up or re-logged.

If KPI is exceeded, the work itembecomes overdue and the person’smanager is notified.

Proactive Service: Campaign Management

Campaign builtby an

administratorCRM Campaign ManagementReceived campaign from

external system

Extract

E-Mail

Create and send e-mails on the execution date

Dialler

Calls sent to Agent via Dialler

Phone

Calls assigned to back office Agent

to complete

SMS

Create and send SMS message to customer on the execution date

Campaign Execution

CRM CampaignManagement

CRM Workflow

CRM Workflow

Task Accountable and Customer Accountable Escalation

Front Office “Contact Logger”

And“Case Opener”

Back Office “Workflow Recipient”

And“Work Doer”

CRM Work Flow

Manager / Supervisor(Accountable for Task)

Area DC /Customer Exec

(Accountable for Customer)

Escalation when task overdue1=“Task” escalation to the Doer’s boss to chase the work2=“Customer” escalation to the person accountable for the customer to advise him in case proactive intervention / customer feedback is necessary

Notes:Could be the same person eg an Area DC is accountable for the customer AND is accountable for his service agent doing the work - in this case the person will get both views.

Could be to 2 different people – eg the Billing Mgr gets the task escalation and the Area DC gets the Customer escalation when the Billing clerk fails to deliver the work on time.

The customer accountable person is the NAMED person accountable for that specific customer.

1 2

“VIP / Sensitive” customers Principles:a) Workflow is identical as for non-

vip / sensitive customersb) The only addition is notification

to the customer accountable person that a case has started

Notification of new case

opened

Fit to generic CRM Functions

1) MARKETING – Campaign Management for :• Service Availability (Planned / Unplanned)• Credit Management• New Service Activation audit checks• Ad hoc Sales campaigns

2) SALES – No focus (future)

3) SERVICE:• Multichannel (Web / Contact Centre / SMS)• Resource Planning & Optimisation (Work Force Management across

7 CC’s)• Case Management (Logging / Workflow / Escalation / Monitoring up

to Regional Manager level / Segment differentiation (VIP flow))

4) ANALYTICS (Reporting):• Service Levels / Overdue• Interaction Types trends• Costs• Channel trends

Fit to generic CRM Functions

5) AGENT DESKTOP:>Case Logging >Scripting>Fault Analysis >Electronic Contracting>Case History >Dashboard>Case Based reasoning >Knowledge Management Toolbox

6) SELF SERVICE:• Account Balance (IVR) / Web site / Fax & Email

7) FIELD SERVICE MANAGEMENT:• Mobile Data Terminal – Mile 1,2A, 2B, 3• Cell / PDA – Disconnect / Reconnect Work Orders

8) DATA MANAGEMENT:• Customer Details• Customer / Network Link / GPS• Sales Info - Follow up on No Sales for theft

Learning Points - Process

• Aggressive timeline of a year worked well (trimmed scope to fit)

• Phased implementation with a core at each site and overlap with old system worked well

• Extensive user involvement in design and testing proved valuable (workshops, SMEs, Testing, secondments)

• Framework solution easy to fine tune & change processes

• Workflow structuring is excellent down to Person level and easy to maintain

• Workflow co-ordination / administration roles required

• Dashboard Reporting is good - Generating analytical reports requires a good report writer tool

Learning Points - Technology

• Pilot use of iBus technology, lack of skills and experience.• Multiple major initiatives in the business (726, CDX

upgrade, etc)• Too many External Dependencies –13 different teams

involved• Integration effort took much longer than estimated• Training database performance not good (hardware

capacity)• Full infrastructure requirements (Dev/QA/Training) unknown

upfront• Multiple sessions open impacts licence usage• Client and workflow kernel crashes• Not enough upfront DR planning

Learning Points – Change Management

• Training on Framework System with familiar processes was easy

• Extensive line involvement during development and testing created strong ownership and knowledge/experience

• Implementation structure with team members deployed to support regions was very successful – Change Management Missionaries

• Extensive project communication involving many channels and addressing all levels of stakeholders created a “pull” from the business.

• Strong business involvement and ownership of Change Stream

• Strong sponsor involvement and direction across all streams• Dual system usage had both positive and negative effects.

Benefits description

Service / Process Efficiency:• Efficiency resulting from reduction of average handling time, by

presenting all relevant information in a timely manner• Efficiency from first contact resolution (reduction in despatched

items)• Efficiency from self service channels• Efficiency from improved Case Management• Efficiency from one contact resolution (reduction of repeat calls)• Increase in service levels by being able to handle more requests in

shorter timescales and reduced number of repeat calls • Reduced growth in manpower due to efficiencies in all areas (e.g.

reduced call volumes, better case management, efficiency from self-service channels, reduced AHT, etc.)

Secondary Benefits:• Reduction in training costs (reduction in agent training time due to

the intuitive nature of the CRM System Solution)• Efficiency from flexibility for process changes• Ongoing benefits in terms of process improvement to continually

increase efficiency and customer service.

Benefits Tracking

• Reduced cost of service by 25% (cost per customer) since 1995

• Improved Customer Service

• New indicators:–One Contact Resolution–First Contact Resolution–Average Handling times–Manpower costs / count–Training costs / days

National Service Level - Inception to date

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Jan-

00

Mar

-00

May

-00

Jul-0

0

Sep

-00

Nov

-00

Jan-

01

Mar

-01

May

-01

Jul-0

1

Sep

-01

Nov

-01

Jan-

02

Mar

-02

May

-02

Jul-0

2

Sep

-02

Nov

-02

Jan-

03

Mar

-03

May

-03

Jul-0

3

Sep

-03

Nov

-03

Jan-

04

Mar

-04

May

-04

Jul-0

4

Sep

-04

Nov

-04

Jan-

05

Mar

-05

SL month

SL 12mmi

Target

National CSI (12mma for 2004 to 2005)

72

73

74

75

76

77

78

79

80

Tar

get

Jan-

04

Feb

-04

Mar

-04

Apr

-04

May

-04

Jun-

04

Jul-0

4

Aug

-04

Sep

-04

Oct

-04

Nov

-04

Dec

-04

Jan-

05

Feb

-05

Mar

-05

6 Months after Go Live

• Contact Centre Staff say it is a huge improvement• Account Ops Staff love it and use it actively• Wires Works Management Centre say it is an

improvement• Area staff are extremely enthusiastic and say it has

reduced their work load• CS Deliver Controller says:

“It is fantastic. I can sit at my desk and see the status of all customer issues my remotely located service agents are handling.”

• Service Agent at remote locations love it.

Such a positive reaction to a new major system is unique in Eskom, especially after only 6

months during which time performance was interrupted at times

Future Vision

• Flexibility of Framework Solution– To integrate many legacy systems from Municipalities

and Eskom into Regional Electricity Distributors (REDs)– To provide economy of scale across 6 independent REDs– Variations and phased versions of the above

• Interaction Automation

• Personalisation

• Relationship Management via People Interface

• Expansion into Sales & Marketing

Enquiries: kevin.vonberg@eskom.co.za

Making Eskom “Easy to do business with”